3. UNLOCK THE 8-LETTER WORD BY FINDING THE
SIMILARITIES OF EACH OF THE FOLLOWING
ILLUSTRATIONS. WRITE YOUR ANSWER INSIDE
THE BOXES PROVIDED BELOW.
4. HERE ARE SOME IMPORTANT TERMS TO
REMEMBER.
•Interest (I) – the amount paid or earned for
the use of money.
•Simple Interest (Is) – it is the interest that is
computed on the principal and then added to it.
5. • Compound Interest (Ic) – the interest is computed
on the principal and on the accumulated past
interests
•Principal (P) – the amount of money borrowed or
invested on the origin date.
• Rate (r) – the annual rate, usually in percent,
charged by the lender, or rate of increase of the
investment.
6. •Time or Term (t) – It is the amount of time in
years the money is borrowed or invested, length of
time between the origin and maturity dates.
•Maturity value or future value (F) – It is amount
after t years that the lender receives from the
borrower on the maturity date.
•Origin or loan date – The date on which money is
received by the borrower.
7. MATURITY DATE – THE DATE ON WHICH THE
MONEY BORROWED, OR LOAN IS TO BE
COMPLETELY REPAID.
• Lender o creditor – The person (or institution)
that invests the money or makes the funds
available.
•Borrower or debtor – The person (or institution)
that owes the money or avails of the funds from the
lender.
9. 1. A bank offers 0.25% annual simple
interest rate for a particular deposit. How
much will be earned if 1 million is
deposited in this saving account for 1
year?
10. •How much is the interest is
charged when P50,00 is
borrowed for 9 months at an
annual rate of 10%
11. •When invested at an annual interest
rate of 7%, the amount earned P
11,200 simple interest . How much
money is invested?
